1 May 2015
EUR/GBP spikes to 3-week highs near 0.7350
FXStreet (Mumbai) - The EUR/GBP cross jumped to fresh three week highs after the pound took a beating against the shared currency on poor manufacturing gauge reading from the UK which came in at a seven month low.
EUR/GBP rises from 0.7313
Currently, the EUR/GBP cross trades 0.46% higher at fresh three week highs at 0.7347 jumping nearly 40 pips. The cross in EUR/GBP shot higher after the pound lost ground versus the euro after UK factories activity decelerated unexpectedly at the start of the second quarter underscoring fragile economic recovery in Britain.
In April, Markit's manufacturing PMI came in at 51.9, sharply below estimates of a 54.6 reading and down from a reading of 54.4 in March.
Moreover, uncertainty around UK elections next week and UK’s EU referendum continues to undermine sterling, boosting EUR/GBP higher. Also, broad euro strength amid US dollar retreat also supports the rally in the cross.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7381 (April 6 High) and above which it could extend gains to at 0.7400 levels. To the downside immediate support might be located at 0.7300 levels below that at 0.7263 (March 27 Low) levels.
EUR/GBP rises from 0.7313
Currently, the EUR/GBP cross trades 0.46% higher at fresh three week highs at 0.7347 jumping nearly 40 pips. The cross in EUR/GBP shot higher after the pound lost ground versus the euro after UK factories activity decelerated unexpectedly at the start of the second quarter underscoring fragile economic recovery in Britain.
In April, Markit's manufacturing PMI came in at 51.9, sharply below estimates of a 54.6 reading and down from a reading of 54.4 in March.
Moreover, uncertainty around UK elections next week and UK’s EU referendum continues to undermine sterling, boosting EUR/GBP higher. Also, broad euro strength amid US dollar retreat also supports the rally in the cross.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7381 (April 6 High) and above which it could extend gains to at 0.7400 levels. To the downside immediate support might be located at 0.7300 levels below that at 0.7263 (March 27 Low) levels.